Pep Boys May Not Be Bought By Bridgestone After All

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Pep Boys said on December 9 that it told Bridgestone that the company may ditch an already agreed upon $835 million buyout offer. They declared possible intentions to go with a competing offer from Carl Icahn’s investment firm that is worth $2 million more.

Icahn Enterprises is offering $15.50 for each Pep Boys share, compared with Bridgestone’s offer of $15 per share. The buyout from Icahn Enterprises is worth about $837.4 million. Icahn, an activist investor, has an 11.2 percent stake in Pep Boys, according to FactSet.

Bridgestone, a Japan-based tires and auto service company, has until Friday, December 11 to increase its offer or Pep Boys said it will take Icahn’s deal. Pep Boys said it notified Bridgestone of its decision on Monday. Bridgestone did not immediately respond to a request for comment.

Pep Boys - Manny, Moe & Jack, based in Philadelphia, has about 800 locations around the country that sell auto parts and repairs vehicles. 

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